Sale Complete; ATL Owned by Quantum
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Quantum Corp., the world’s second-largest disk-drive maker, said Monday that it completed its acquisition of computer tape-library maker ATL Products Inc. for about $300 million in stock.
Quantum said it issued 1.7554 shares for each share of Irvine-based ATL, or about 18.8 million Quantum shares. To prevent dilution from the transaction, Quantum said it has repurchased about 12.6 million of its shares since May and has approved $40 million to purchase additional shares.
ATL, a leading maker of high-end tape libraries, adds to Quantum’s existing tape-storage business. Tape libraries, which are jukebox-like machines, are a popular way to store information in corporate computer networks.
ATL will become a wholly owned subsidiary of Quantum, which is based in Milpitas. The tape-automation market is estimated at $2.4 billion.
Quantum’s stock fell $1.19 a share to $15.63.
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